Governor Ventura is proposing a $250 million-a-year hike in
the state's transportation budget, with an increased emphasis on mass transit.
Republican leaders have also been talking about spending more on transportation
this year, but when they say "transportation," they mean "roads."

THE MINNESOTA CONSTITUTION
requires all gas taxes go to building roads and
bridges. There's no way for lawmakers to spend it on welfare, education, or on
other forms of transportation. For decades, the agencies that run mass transit
have wished they, too, had a dedicated source of state funding; Metropolitan
Council chairman Ted Mondale says fighting for funding every two years makes it
hard to run a bus system.

Mondale: When it takes three years to order buses, and you're making decisions
five years out, it's very difficult not to have that clarity.

Now, Governor Ventura is offering mass transit that clarity in the form of a
new so-called "multi-modal transportation fund." Ventura proposes dedicating
half the money raised by sales taxes on cars - that's $250 million a year - to the fund, which would in turn be spent on a mix of
transportation projects.

Some rural legislators have expressed concern that the recent Department of
Transportation study that will guide how much of the fund's money is spent tends
to favor "regional centers" like St. Cloud at the expense of smaller towns in
more isolated areas.

Ventura: The days of a highway-only transportation program are over. We are
committed to creating transportation choices. This plan aggressively addresses
improvements that must be made to our existing highway system, and it provides
dollars to expand our existing metro and greater Minnesota transit systems.

The constitutional dedication of the money to the multi-modal fund would require
the voters' approval this fall.

Legislators are having a hard time figuring out exactly how they feel, and how
they should react, to the governor's plan. Its "multi-modal" nature means it
will generate a net increase in funding for all kinds of transportation,
including the highway improvements backed by the Republicans. Still, House
Transportation Finance chairwoman Carol Molnau couldn't quite bring herself to
praise Ventura's plan.

Molnau: Actually, I think the Republicans came out with the initiative first, so
I'm glad he's following along.

And although Molnau welcomes an overall increase in transportation funding,
she's skeptical about what she sees as an "imbalance" in the plan.

Molnau: I think it's weighted very heavily toward the metro area and transit, so
I think that's the weighting.

Some rural legislators have expressed concern that the recent Department of
Transportation study that will guide how much of the fund's money is spent tends
to favor "regional centers" like St. Cloud at the expense of smaller towns in
more isolated areas.

But Republican leaders are most skeptical about all the new money the fund would
funnel into mass transit, especially a proposal to start planning more light-rail lines, even as work on the controversial Hiawatha LRT has hardly begun. In
fact, light rail is shaping up to be the most contentious piece of the Ventura
plan; House Republicans have been hinting for months that they might try to
repeal the LRT legislation passed last year.

Majority Leader Tim Pawlenty.

Pawlenty: We have significant concerns about cost-overruns and the process of
management of the proposed current light-rail line.

Ventura has heard the implied threats against the Hiawatha line, possibly his
proudest achievement during the 1999 legislative session, and he warned
Republicans not to use it against him during the current transportation debate.

Ventura: The discussion has been and continues to be hurt by those who want to
use it as a forum to fight old battles and attempt to undo old agreements.

Ventura is also trying to sweeten the deal for Republicans by combining his
transportation plan with a kind of tax cut. The other half of the sales taxes on
cars would go toward lowering annual license tab fees, capping them at $75
dollars.

And how is Ventura able to spend more and cut taxes at the same time?
Finance commissioner Pam Wheelock says the plan takes advantage of some of the
state's budget surplus, which administration officials believe has become a
permanent, annual phenomenon.